The cache_peer directive sets your peer caches and informs Squid how to communicate with them.
It is written like this:
cache_peer hostname Server-type http-port icp-port [options]
The first argument is the other squid hostname or IP address.
The 2nd argument specifies the type of the other server.
The 3rd argument is the port number.
The 4th argument specifies the ICP port (Internet Caching Protocol) which is 3130. This is used to query other cache servers.
The cache_peer has some options you can use like:
Write your options and save the configuration file and restart the service.